Department Issues Guidance Regarding Implementation of HERA Provisions

To help schools ensure that they meet the provisions of the Higher Education Reconciliation Act of 2005 when determining a student’s eligibility for Title-IV aid for 2006-2007, the U.S. Department of Education issued Dear Colleague Letter GEN-06-10.

The letter and attachment addresses HERA-related changes regarding the following issues:

• The definition of estimated financial assistance.
• The construction of a student’s cost of attendance.
• The treatment of qualified education benefits, such as Internal Revenue Service 529 pre-paid tuition and savings plans.
• The items in and formulas used to calculate an applicant’s Expected Family Contribution.
• The treatment of certain assets and resources.
• Including active-duty-military members in the definition of an independent student.
• The student-eligibility provision related to drug convictions.

You will need Adobe Acrobat Reader to access the letter and attachment.